Compare Two Loans Calculator

Financial Lending Analysis Tool

Description

Financial calculator for comparing or analyzing two loans or mortgages. The calculator is for fixed rate loans. Typically fixed rate loans are used to purchase or buy cars, trucks, automobiles, recreational vehicles and homes (fixed rate mortgage). This calculator should not be used for Adjustable Rate Mortgages (ARM), revolving lines of credit or credit cards, since payment are not fixed or equal from month to month.

Analysis includes monthly and total payment, interest and principal paid, balance versus time, cumulative data and amortization table calculations. The tool give visual representation of the data using charts, graphs, plots and tables

Note: After any input is changed, the solution is automatically updated.

Chart: Monthly Payment

Chart: Total Paid

Chart: Total Paid Split

Chart: Balance vs Time

Chart: Monthly Principal vs Time

Chart: Cumulative Principal vs Time

Chart: Monthly Interest vs Time

Chart: Cumulative Interest vs Time

Amortization Table: Loan 1

Amortization Table: Loan 2

Instructions

1. Enter loan amounts - The loan amount is the total amount of money being loaned from the bank, mortgage company, lender or other financial institution.
2. Enter interest rates - Interest rate is the lending rate the bank is charging for the loan. Enter the value as a percent. Typically, loans with longer terms have a higher rate and shorter term loans have a lower rate. Moreover, a person with good credit will qualify for a lower interest rate as opposed to a person with bad credit. Tip, a person should shop around for the best deal. In many cases, mortgage rates can be negotiated.
3. Enter the terms - Term is the number of years it will take to repay or payoff the loan. It is the duration or length of time payments will be sent to the lender. Note, this calculator assumes payments are made on a monthly basis.

Definitions

1. Term - The program calculates the number of months payments will be sent to the lender. It is the number payments. Note, one year has twelve months.
2. Monthly payment - The amount of money to be paid to the lender each month.
3. Total payments - The total amount of money paid during the lifetime of the loan. It is calculated by multiplying the term or number payments by the monthly payment. Total payments in total amount of interest and principal paid.
4. Total interest paid - The total amount of money paid to the lender for loaning the money over the lifetime of the loan.
5. Amortization tables - A numeric table showing how each monthly payment is divided into interest and principal. In addition, it shows the monthly payment (same for each month) and loan balance for each month.